XN000022-1987-07-01 — Page 11

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WEDNESDAY, JULY 1, 1987

HE POINTED OUT THAT ONLY THOSE CASES CLAIMING ONE MONTH'S WAGEN IN LIEU OF NOTICE WOULD NEED TO BE INVESTIGATED. MOREOVER, IT WOULD NOT BE EASY FOR CLAIMANTS TO HOODWINK THE GOVERNMENT EVEN IF THEY HAD THE INTENTION. IT WOULD BE AGAINST THE SPIRIT OF THE FUND THE GOVERNMENT WAS TO MINIMISE ITS PROTECTION FOR EMPLOYEES JUST FOR THE SAKE OF SOME SMALL GAINS IN ADMINISTRATIVE CONVENIENCE.

IF

MR TAM DID NOT AGREE WITH THE VIEW THAT THERE WAS A NEED TO TAKE A CAUTIOUS APPROACH TOWARDS ESTIMATES OF THE FUND'S INCOME AND EXPENDITURE BECAUSE OF A POSSIBLE DOWNTURN IN THE ECONOMY IN FUTURE.

HE NOTED THAT IF CLAIMS FOR ONE MONTH'S WAGES WERE ΤΟ BE ACCEPTED, ANNUAL PAYMENTS WERE ESTIMATED TO COST $12.8 M'LLION, WHEREAS IF THE SEVEN DAYS' LIMIT WAS ADOPTED, THE COST WOULD BF $8.4 MILLION. THE DIFFERENCE WAS $4.4 MILLION, WHICH REPRESENTS ONLY FIVE PER CENT OF THE ACCUMULATED SURPLUS OF THE FUND.

IF THE GOVERNMENT ACCEPTED THE PROPOSAL OF OMELCO MEMBERS AND THE WORKERS AND EXEMPTS IT FROM THE PAYMENT OF ADMINISTRATIVE FEES,

SURPLUS THE FUND SHOULD STILL BE ABLE TO MAINTAIN AN ANNUAL

EVEN LF

THE

ΤΟ

FORMER LIMIT WAS ADOPTED. IT WAS THEREFORE DIFFICULT APPRECIATE THE ANXIETY FELT BY THE GOVERNMENT, HE ADDED.

AT

HE ALSO SAID LABOUR REPRESENTATIVES HAD EXPRESSED UNANIMOUS SUPPORT FOR EXTENDING THE SCOPE OF PROTECTION OF THE FUND ΤΟ COVER WAGES IN LIEU OF NOTICE AND SETTING THE LIMIT

ONE MONTH'S WAGES AND $2,000. "FOR THE ABOVE REASONS, I CONSIDER THAT SUCH AN EXTENSION WAS IN FACT ALREADY A VERY CAUTIOUS FIRST STEP AND SHOULD PROVIDE A FAIRER PROTECTION FOR EMPLOYEES," HE SAID.

IMPROVEMENT OF BENEFITS SHOULD BE PRUDENT

IMPROVEMENT OF

BENEFITS

SHOULD BE MADE STEP BY

STEP AND KAN-CHUEN

AFFORDABLE BY TAKING THE FUTURE INTO ACCOUNT, THE HON CHAN TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

SPEAKING AGAINST A MOTION ΤΟ MOVE AN AMENDMENT TO THE PROTECTION OF WAGES ON INSOLVENCY (AMENDMENT) BILL 1987 AT THE COMMITTEE STAGE, MR CHAN SAID HONG KONG MUST HAVE A SUBSTANTIAL RESERVE TO COPE WITH THE LEAN YEAR AND DID THE BEST IT COULD.

HE SAID THAT AS A SIGNATORY OF THE REPORT ON THE WORKING GROUP ON PROBLEMS EXPERIENCED BY WORKERS OF COMPANIES IN RECEIVERSHIP OF JUNE 1983, HE SUGGESTED THAT A LEVY OF $100 VER ANNUM PER BUSINESS REGISTRATION CERTIFICATE WOULD SOLVE THE PROBLEM.

/HE WAS